CASE: eBay's GLOBALIZATION STRATEGY
February 21, 2001
From: Amal
MBA Student, Spring 2006
To: Matt Bannick
Senior Vice President, International eBay
In response to your request for an outsider's perspective concerning how you can handle your growth in Latin America, the following report presents my analysis and recommendations of your potential growth in the area, and how to handle the Brazilian division of IBazar.
I hope that my report justifies my recommendations.
EXECUTIVE SUMMARY
After I received your email asking me to give recommendations about the IBazar Brazilian operation and your next expansion in Latin America, I spent the whole week analyzing the eBay current situation, as well as the Latin America e-commerce market, in order to come up with the appropriate solution that guarantees an immediate success of your company in the region. First, I will start with a systematic analysis of eBay's international market-entry strategies. Second, I will exanimate the Latin America e-commerce market. Finally, I will use the precedents analyses to provide you with a set of recommendations concerning the prospective expansion in Brazil, as well as, your extension in the entire Latin America as a whole.
eBay's INTERNATIONAL MARKET-ENTRY STRATEGIES
EBay aggressive desire to expand globally goes back to one of the very early goals of eBay: Create a global trading platform that would make it as easy as possible for anybody anywhere to trade practically anything. After eBay early success in the United States, it began looking at the possibilities of offering the service on an international level.
EBay has used all the three different options available to look at a new market. One of them is clear ...